Wells Fargo misses profit estimates on severance costs, shares fall

Wells Fargo shares slid after the bank missed quarterly profit estimates, even as net interest income rose. Reuters reports the miss was driven by $612 million in severance costs tied to job cuts, while net interest income increased 4% to $12.33 billion but still came in below expectations. Wells Fargo also guided 2026 net interest income to about $50 billion, slightly under the Street’s average estimate. The stock finished down 4.6% on the day.

Why this matters for traders:

This is a classic “mixed quarter” setup for big banks: higher interest income and stable credit, but expenses and guidance can still dictate the stock’s reaction. It also puts a spotlight on 2 forward themes:

1. Banks trying to fund growth via efficiency (headcount cuts,  ...